Portfolio Budget Statements 2016-17 - Department of Home ... · Portfolio Budget Statements 2016-17 . ... manage the border to contribute to a safer, secure Australia; manage the

Portfolio Budget Statements 2016-17

Budget Related Paper No. 1.11

Immigration and Border Protection Portfolio

Budget Initiatives and Explanations of Appropriations Specified by Outcomes

and Programs by Entity

ii

© Commonwealth of Australia 2016

ISSN 978-1-920996-55-0

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iii

THE HON PETER DUTTON MP

MINISTER FOR IMMIGRATION

AND BORDER PROTECTION

President of the Senate

Australian Senate

Parliament House

CANBERRA ACT 2600

Speaker

House of Representatives

Parliament House

CANBERRA ACT 2600

Dear Mr President

Dear Mr Speaker

I hereby submit Portfolio Budget Statements in support of the 2016-17 Budget for the

Immigration and Border Protection portfolio.

These statements have been developed, and are submitted to the Parliament, as a

statement on the outcomes for the portfolio.

I present these statements to provide accountability to the Parliament and, through it,

the public.

Yours sincerely

The Hon Peter Dutton MP

Minister for Immigration and Border Protection

iv

Abbreviations and conventions

The following notation may be used:

NEC/nec not elsewhere classified

- nil

.. not zero, but rounded to zero

na not applicable (unless otherwise specified)

nfp not for publication

$m $ million

$b $ billion

Figures in tables and in the text may be rounded. Figures in text are generally rounded

to one decimal place, whereas figures in tables are generally rounded to the nearest

thousand. Discrepancies in tables between totals and sums of components are due to

rounding.

Enquiries

Should you have any enquiries regarding this publication please contact Steven

Groves, Chief Finance Officer, Department of Immigration and Border Protection on

(02) 6264 1235.

Links to Portfolio Budget Statements (including Portfolio Additional Estimates

Statements and Portfolio Supplementary Additional Statements) can be located on the

Australian Government Budget website at: www.budget.gov.au.

http://www.budget.gov.au/

v

USER GUIDE TO THE

PORTFOLIO BUDGET STATEMENTS

vi

USER GUIDE

The purpose of the 2016-17 Portfolio Budget Statements (PB Statements) is to inform

Senators and Members of Parliament of the proposed allocation of resources to

government outcomes by entities within the portfolio. Entities receive resources from

the annual appropriations acts, special appropriations (including standing

appropriations and special accounts), and revenue from other sources.

A key role of the PB Statements is to facilitate the understanding of proposed annual

appropriations in Appropriation Bills (No. 1 and No. 2) 2016-17 (or Appropriation

(Parliamentary Departments) Bill (No. 1) 2016-17 for the parliamentary departments).

In this sense the PB Statements are Budget related papers and are declared by the

Appropriation Acts to be ‘relevant documents’ to the interpretation of the Acts

according to section 15AB of the Acts Interpretation Act 1901.

The PB Statements provide information, explanation and justification to enable

Parliament to understand the purpose of each outcome proposed in the Bills.

As required under section 12 of the Charter of Budget Honesty Act 1998, only entities

within the general government sector are included as part of the Commonwealth

general government sector fiscal estimates and produce PB Statements where they

receive funding (either directly or via portfolio departments) through the annual

appropriation acts.

vii

CONTENTS

Portfolio overview ......................................................................................................... 1

Immigration and Border Protection portfolio overview .................................................... 3

Entity resources and planned performance ............................................................... 5

Department of Immigration and Border Protection ......................................................... 7

Portfolio glossary ........................................................................................................ 75

Index ............................................................................................................................. 77

1

PORTFOLIO OVERVIEW

3

IMMIGRATION AND BORDER PROTECTION PORTFOLIO

OVERVIEW

Minister(s) and portfolio responsibilities

The portfolio has two Ministers, the Hon Peter Dutton MP, the Minister for

Immigration and Border Protection and Senator, the Hon James McGrath, Assistant

Minister for Immigration.

The Department of Immigration and Border Protection (DIBP) is a non-corporate

Commonwealth entity under the Public Governance, Performance and Accountability ACT

2013 (PGPA Act).

From 1 July 2015, DIBP and the Australian Customs and Border Protection Service

(ACBPS) consolidated into a single Department, with a frontline operational arm, the

Australian Border Force (ABF) established within DIBP. As a result of the

consolidation, ACBPS was abolished as a statutory agency through the repeal of the

Customs Administration Act 1985.

Department of Immigration and Border Protection

DIBP provides policy, regulatory and corporate services as well as delivering

intelligence and capability for the organisation. It has immigration responsibilities to

manage the entry and stay of temporary and permanent migrants, to promote and

confer citizenship and to meet Australia’s humanitarian and refugee obligations. It also

contributes to strong national security and the economy through effective border

security control and the facilitation of seamless legitimate movement of people and

goods across Australia’s borders.

Australian Border Force

The ABF is the operational arm of DIBP and has statutory responsibilities to enforce

the customs and migration laws and the protection of Australia’s border.

As the operational enforcement arm within DIBP, the ABF is focussed on the

operational border, investigations, compliance, detention and enforcement functions

offshore and onshore, across Australia’s air and seaports, and land and maritime

domains. It is also responsible for the collection of the majority of border-related

revenue collected by DIBP.

For information on resourcing across the portfolio, please refer to Part 1: Agency

Financial Resourcing in Budget Paper No. 4: Agency Resourcing.

Portfolio overview

4

Figure 1: Immigration and Border Protection portfolio structure and outcomes

Minister for Immigration and Border Protection

The Hon Peter Dutton MP

Assistant Minister for Immigration

Senator the Hon James McGrath

Department of Immigration Australian Border Force

and Border Protection

Secretary: Mr Michael Pezzullo Commissioner: Mr Roman Quaedvlieg APM

Outcome 1 Protect Australia’s sovereignty, security and safety by managing its border,

including through managing the stay and departure of all non-citizens.

Outcome 2 Support a prosperous and inclusive society, and advance Australia’s economic

interests through the effective management of the visa and citizenship programs

and provision of refugee and humanitarian assistance.

Outcome 3 Advance Australia’s economic interests through the facilitation of the trade of goods

to and from Australia and the collection of border revenue.

5

ENTITY RESOURCES AND PLANNED PERFORMANCE

Department of Immigration and Border Protection ................................................... 7

7

Department of Immigration and Border Protection

Entity resources and planned performance

9

DEPARTMENT OF IMMIGRATION AND BORDER

PROTECTION

Section 1: Entity overview and resources ................................................................ 11

1.1 Strategic direction statement .......................................................................... 11

1.2 Entity resource statement ............................................................................... 13

1.3 Budget measures ............................................................................................ 15

Section 2: Outcomes and planned performance ..................................................... 20

2.1 Budgeted expenses and performance for Outcome 1 .................................... 21



Section 3: Budgeted financial statements ................................................................ 55

3.1 Budgeted financial statements........................................................................ 55

3.2.1 Budgeted financial statements tables ............................................................. 62

DIBP Budget Statements

11

DEPARTMENT OF IMMIGRATION AND BORDER

PROTECTION

Section 1: Entity overview and resources

1.1 STRATEGIC DIRECTION STATEMENT

DIBP’s mission is to protect Australia’s border and manage the movement of people and goods across it. As Australia’s global gateway, DIBP facilitates trade, travel and migration while protecting Australia from threats to the border. DIBP’s three overarching purposes are to: manage the border to contribute to a safer, secure Australia; manage the movement of people and goods to contribute to a strong economy; and manage the movement and stay of people to contribute to a cohesive society.

In an increasingly globally connected world, the border is a national asset which holds national security as well as economic and strategic value. Streamlined and effective border management allows for the seamless legitimate movement of people and goods into and out of Australia and enhances trade, travel and migration. The operational environment in which DIBP works is characterised by growing volumes and increasing complexity; the number and range of actors transacting at or across the border is rapidly increasing, and is underpinned by continuous advances in new technologies. These factors bring significant elements of both opportunity and risk to our business.

To meet the expectations of the Government and mitigate these risks, DIBP will continue to build information and intelligence capabilities such as real-time data fusion, enhanced information-sharing with partners, biometrics, intelligence-based targeting of high-risk border movements and quick-response interdiction. We will increasingly seek to minimise our interventions in relation to lower-risk border movements, and concentrate our efforts where we can make the most difference in terms of enforcing our laws, protecting our community and helping to ensure the nation’s security. Collaboration with other domestic and international border, national security, law enforcement and intelligence agencies is a high priority to allow us to ensure a comprehensive approach to border security.

In 2016-17 DIBP will achieve its strategic objectives through a comprehensive suite of strategic and operational measures encompassing law enforcement, migration and trade. We will uphold Australia’s sovereignty as we work across land and maritime domains to protect our border, and pursue collaborative relationships with domestic and international partners to maximise immigration and border protection capability.

DIBP will enhance its prevention, deterrence and enforcement capability to target and resolve national security and transnational crime threats, contributing to whole-of-government law enforcement and national security efforts. Our prevention of the unauthorised movement of people across the border and resolution of the status of the


12

Illegal Maritime Arrival caseload will further strengthen public confidence in the integrity of our borders and ensure the security of our maritime borders is sustained.

Continued improvements in detention under the Migration Act will ensure immigration detention is strategically aligned, affordable and sustainable, supporting the integrity of the migration program and protection of Australia’s border.

DIBP will also to work with its regional partners to support our joint efforts to combat people smuggling.

DIBP will continue to deliver a responsive migration program that facilitates the legitimate movement and stay of people to support the economy and strengthen social cohesion, underpinned by enhanced automation and a focus on streamlined and seamless experiences at the border. We will contribute to global management of refugees and displaced populations through the delivery of a humanitarian program which mitigates risks and supports successful integration and settlement of refugees in Australia.

DIBP’s enhanced technology and business processes will support the Australian economy by enabling the efficient movement of goods across the border. Implementation of an ongoing Australian Trusted Trader (ATT) Programme will enhance supply chain security and deliver tangible trade facilitation benefits to accredited ATT Programme participants. This will ultimately contribute to economic growth by streamlining trade and improving the international competitiveness of Australian businesses.

We will manage the collection of visa fees and customs duties to maximise revenue to the Government and minimise the regulatory burden of border procedures on Australian businesses in line with the deregulation agenda. Enhanced intelligence and detection capabilities and collaboration with other law enforcement agencies will prevent the movement of prohibited and restricted goods across the border.


13

1.2 ENTITY RESOURCE STATEMENT

Table 1.1 shows the total funding from all sources available to the entity for its

operations and to deliver programs and services on behalf of the Government.

The table summarises how resources will be applied by outcome (government strategic

policy objectives) and by administered (on behalf of the Government or the public) and

departmental (for the entity’s operations) classification.

For more detailed information on special accounts and special appropriations, please

refer to Budget Paper No. 4 – Agency Resourcing.

Information in this table is presented on a resourcing (i.e. appropriations/cash

available) basis, whilst the ‘Budgeted expenses by Outcome’ tables in Section 2 and the

financial statements in Section 3 are presented on an accrual basis.

Table 1.1: DIBP resource statement — Budget estimates for 2016-17 as at Budget May 2016

2015-16

Estimated

actual

$'000

2016-17

Estimate

$'000

Departmental

Annual appropriations - ordinary annual services1

Prior year appropriations available2 419,347 345,372

Departmental appropriation 2,516,849 2,356,251

s74 retained revenue receipts3 149,767 150,614

Departmental capital budget4 116,639 120,519

Annual appropriations - other services - non-operating5


Equity injection 212,218 197,179

Total departmental annual appropriations 3,489,067 3,261,561

Total departmental resourcing 3,489,067 3,261,561

Administered

Annual appropriations - ordinary annual services1 2,186,586 2,107,321

Prior year appropriations available2

Outcome 1 782,629 774,493

Outcome 2 12,144 14,916

Outcome 3 - -

Administered capital budget6 26,098 18,856

Annual appropriations - other services - non-operating5


Administered assets and liabilities 140,350 124,074


14

Table 1.1: DIBP resource statement — Budget estimates for 2016-17 as at Budget May 2016 (continued)

2015-16

Estimated

actual

$'000

2016-17

Estimate

$'000

Total administered annual appropriations 3,336,683 3,180,229

Total administered special appropriations7 420,000 420,000

Total administered resourcing 3,756,683 3,600,229

Total resourcing for agency DIBP 7,245,750 6,861,790

2015-16 2016-17

Average staffing level (number) 13,750 13,445 Prepared on a resourcing (i.e. appropriations available) basis. 1. Appropriation Bill (No. 1) 2016-17. 2. Estimated adjusted balance carried from previous year for annual appropriations. This includes

$0.6 million for Departmental operating prior year appropriation, $34.3 million for Departmental non-operating prior year appropriation from 2012-13 and 2013-14 and $153.4 million Administered operating prior year appropriation in 2013-14. These appropriation will be extinguished when the Omnibus Repeal Day Bill 2005 receives Royal Assent.

3. Estimated retained revenue receipts under section 74 of the PGPA Act 2013. 4. Departmental capital budgets are not separately identified in Appropriation Bill (No.1) and form part of

ordinary annual services items. Please refer to Table 3.5 for further details. For accounting purposes, this amount has been designated as a 'contribution by owner'.

5. Appropriation Bill (No. 2) 2016-17. 6. Administered capital budgets are not separately identified in Appropriation Bill (No. 1) and form part of

ordinary annual services items. Please refer to Table 3.10 for further details. For accounting purposes, this amount is designated as a 'contribution by owner'.

7. Excludes 'Special Public Money' held in accounts like Other Trust Monies accounts (OTM), Services for Other Government and Non-agency Bodies accounts (SOG) or Services for Other Entities and Trust Moneys accounts (SOETM). For further information on special appropriations and special accounts, please refer to Budget Paper No. 4 - Agency Resourcing. Please also see Table 2.1 for further information on outcome and program expenses broken down by various funding sources, e.g. annual appropriations, special appropriations and special accounts.

Please note: All figures shown above are GST exclusive - these may not match figures in the cash flow statement.


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1.3 BUDGET MEASURES

Budget measures in Part 1 relating to DIBP are detailed in Budget Paper No. 2 and are

summarised below.

Table 1.2: Entity 2016-17 Budget measures

Part 1: Measures announced since the 2015-16 Mid-Year Economic and Fiscal Outlook (MYEFO)

Program

2015-16

$'000

2016-17

$'000

2017-18

$'000

2018-19

$'000

2019-20

$'000

Revenue measures

A Streamlined Pathway to

Permanent Residence for

New Zealand Citizens1

2.3

Administered revenues .. .. .. .. ..

Departmental revenues - - - - -

Total .. .. .. .. ..Australian Trusted Trader

Programme1

3.2

Administered revenues - - - - -


Total - - - - - Enhanced Project By-law

Scheme - closure1

3.1

Administered revenues - 60,000 60,000 50,000 50,000


Total - 60,000 60,000 50,000 50,000 Enhancing Tourism - further reforms to

tourist visas1

2.3

Administered revenues - 245 420 420 420


Total - 245 420 420 420 Onshore Immigration Detention

Network - consolidation1

1.3

Administered revenues - - - nfp -


Total - - - nfp - Premium Border Clearance Services -

establishment1

1.2

Administered revenues - nfp nfp nfp nfp


Total - nfp nfp nfp nfp


16

Part 1: Measures announced since the 2015-16 Mid-Year Economic and Fiscal Outlook (MYEFO) (continued)

Program

2015-16

$'000

2016-17

$'000

2017-18

$'000

2018-19

$'000

2019-20

$'000

Removal of the special duty on imported

used vehicles1

3.1

Administered revenues - - - .. ..


Total - - - .. ..

Tobacco excise – measures to improve

health outcomes and combat illicit

tobacco1

3.1

Administered revenues - - 685,000 1,540,000 2,460,000


Total - - 685,000 1,540,000 2,460,000

Trans-Pacific Partnership Agreement1

3.1

Administered revenues - (25,000) (50,000) (60,000) (60,000)


Total - (25,000) (50,000) (60,000) (60,000)World Trade Organization - Information

Techonology Agreement1

3.1

Administered revenues - .. .. (20,000) (60,000)


Total - .. .. (20,000) (60,000)

Total revenue measures

Administered - 35,245 695,420 1,510,420 2,390,420

Departmental - - - - -

Total - 35,245 695,420 1,510,420 2,390,420

Expense measures




2.3

Administered expenses - - - - -

Departmental expenses - 440 58 - -

Total - 440 58 - - Asylum Seeker Support - additional

funding1

1.3

Administered expenses - 39,779 - - -

Departmental expenses - - - - -

Total - 39,779 - - -

PRMAC0

Text Box

1


17


Program

2015-16

$'000

2016-17

$'000

2017-18

$'000

2018-19

$'000

2019-20

$'000

Australian Trusted Trader

Programme1

3.2


Departmental expenses - 11,587 17,367 18,078 16,558

Total - 11,587 17,367 18,078 16,558 Combatting People Smuggling -

international engagement1

1.5


Departmental expenses - 4,525 4,570 - -

Total - 4,525 4,570 - -

Coordination and Outreach Migration

Management Support

- continuation1

1.4



Total - 2,234 - - - Onshore Immigration Detention

Network - consolidation1,2

1.3

Administered expenses 1,613 9,802 (6,779) (23,981) (38,032)


Total 1,613 9,802 (6,779) (23,981) (38,032)Premium Border Clearance Services -

establishment1

1.2


Departmental expenses - nfp nfp nfp nfp

Total - nfp nfp nfp nfp

Reforming the Visa and Migration

Framework1 2.2,2.3


Departmental expenses - - (20,000) (70,000) (90,000)

Total - - (20,000) (70,000) (90,000) Regional Cooperation Arrangements -

continuation1

1.5



Total - 55,396 - - -


18


Program

2015-16

$'000

2016-17

$'000

2017-18

$'000

2018-19

$'000

2019-20

$'000

Regional Support Office -

continuation1,3

1.5



Total - - - - - Supporting Regional Processing

Arrangements – additional funding1

1.4



Total - 61,482 - - -

Tobacco excise – measures to improve

health outcomes and combat illicit

tobacco1

1.1


Departmental expenses - 2,856 4,862 - -

Total - 2,856 4,862 - - Unaccompanied Humanitarian Minors -

additional funding1

2.4

Administered expenses - 7,372 4,730 - -


Total - 7,372 4,730 - -

Total expense measures

Administered 1,613 176,065 (2,049) (23,981) (38,032)

Departmental - 19,408 6,857 (51,922) (73,442)

Total 1,613 195,473 4,808 (75,903) (111,474)

Capital measures




2.3

Administered capital - - - - -

Departmental capital - 1,080 218 - -

Total - 1,080 218 - - Australian Trusted Trader

Programme1

3.2

Administered capital - - - - -

Departmental capital - 4,820 2,528 (143) (872)

Total - 4,820 2,528 (143) (872)


19


Program

2015-16

$'000

2016-17

$'000

2017-18

$'000

2018-19

$'000

2019-20

$'000

Onshore Immigration Detention

Network - enhancement1 1.3

Administered capital - 56,846 5,590 - -

Departmental capital - - - - -

Total - 56,846 5,590 - -

Total capital measures

Administered - 56,846 5,590 - -

Departmental - 5,900 2,746 (143) (872)

Total - 62,746 8,336 (143) (872)

Decisions taken but not yet

announced - 40,779 26,047 18,466 13,916

Prepared on a Government Finance Statistics (fiscal) basis. Figures displayed as a negative (-) represent a decrease in funds and a positive (+) represent an increase in funds. DIBP is operating under a new program structure from 2016-17. See Figure 2. 1. The full measure description and package details appear in Budget Paper No. 2 under the Immigration

and Border Protection portfolio. 2. Savings of $10.8 million from 2015-16 to 2018-19 have already been provided for by the Government. 3. DIBP will absorb costs of $1.3 million per annum associated with the measure within existing resources.


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Section 2: Outcomes and planned performance

Government outcomes are the intended results, impacts or consequences of actions by

the Government on the Australian community. Commonwealth programs are the

primary vehicle by which government entities achieve the intended results of their

outcome statements. Entities are required to identify the programs which contribute to

government outcomes over the Budget and forward years.

Each outcome is described below together with its related programs. The following

provides detailed information on expenses for each outcome and program, further

broken down by funding source.

As part of the 2016-17 Budget, DIBP’s programs for Outcome 1 were re-structured to reflect the re-alignment of DIBP’s activities and reporting of the onshore immigration network. Previously, funding was spread across multiple programs. Further details can be found in Figure 2 under Section 2.1 Budgeted Expenses and Performance for Outcome 1.

Note:

From 1 July 2015, performance reporting requirements in the Portfolio Budget

Statements sit alongside those required under the enhanced Commonwealth

Performance Framework. It is anticipated that the performance criteria described in

Portfolio Budget Statements will be read in conjunction with broader information

provided in an entity’s corporate plans and annual performance statements – included

in Annual Reports from October 2016 – to provide an entity’s complete performance

story.


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2.1 BUDGETED EXPENSES AND PERFORMANCE FOR OUTCOME 1

Outcome 1: Protect Australia’s sovereignty, security and safety by managing

its border, including through managing the stay and departure of all non-

citizens.

Linked Programs

The information provided below shows how Outcome 1 links with programs delivered

by other Commonwealth entities to contribute to common government objectives.

Attorney-General’s Department

Program 1.1: Attorney-General’s Department Operating Expenses—Civil Justice and Legal Services

Program 1.2: Attorney-General’s Department Operating Expenses—National Security and Criminal Justice

Program 1.7: National Security and Criminal Justice

Contribution to Outcome 1 made by linked programs

The Attorney-General’s Department contributes to policy development and advice on transnational organised crime including people smuggling and human trafficking, law enforcement matters, provision of information of national security value, firearms, counter-terrorism, prohibited and restricted goods, illegal drug interdiction, money laundering and regional operations and intercountry adoption arrangements.

Australian Crime Commission

Program 1.1: Australian Crime Commission


The Australian Crime Commission collects, correlates and analyses criminal information and intelligence, resulting in the dissemination of intelligence products. These products assist with the detection of harmful or illegal goods.

Australian Federal Police

Program 1.1: Federal Policing and National Security


The Australian Federal Police support National Security and border enforcement activities through the provision of policing capability at major airports and Australia’s external territories (e.g. Christmas Island).


22

Australian Fisheries Management Authority

Program 1.1: Australian Fisheries Management Authority


The Australian Fisheries Management Authority (AFMA) provides the fisheries focus within the Australian Government Civil Maritime Surveillance and Response Program and is responsible for the administration of legislation with respect to illegal foreign fishers. AFMA aims to deter and prevent illegal foreign fishing by carrying out capacity building projects and cooperative enforcement operations.

Australian Maritime Safety Authority

Program 1.1: Seafarer and ship safety, environment protection and search and rescue


The Australian Maritime Safety Authority is responsible for improving the standard of foreign flagged ships and Australian flagged ships (regulated under the Navigation Act 2012). The implementation and enforcement of improved standards supports the work DIBP undertakes in processing vessels crossing the border.

Department of Agriculture and Water Resources

Program 2.1: Biosecurity and Export Services

Program 2.2: Plant and Animal Health


The Department of Agriculture and Water Resources (DAWR) manages biosecurity and imported food risks to ensure the safe movement into and out of Australia of people, animals, plants, food and cargo. DAWR also provide certification of exports to meet importing country requirements.

Department of Defence

Program 3.1: Defence Contribution to National Support Tasks in Australia


The Department of Defence (Defence) undertake tasks that include: planning and conduct of operations to provide security of the Australian coastline from unauthorised maritime arrivals, smuggling, quarantine evasion and other intrusions to Australian sovereignty; counter-terrorism responses and search and rescue. Defence contributes to the surveillance program and Maritime Border Command tasking, providing maritime surveillance assets that are tasked routinely in accordance with the Government’s direction.


23

Department of the Environment

Program 1.4: Conservation of Australia’s Heritage and the Environment

Program 1.6: Management of Hazardous Wastes, Substances and Pollutants


The Department of the Environment and DIBP work together to control transboundary movements of hazardous wastes and their disposal and to regulate wildlife trade.

Department of Foreign Affairs and Trade

Program 1.1: Foreign Affairs and Trade Operations

Program 2.2: Passport Services


The Department of Foreign Affairs and Trade (DFAT) contributes to whole of government efforts bilaterally and regionally to counter people-smuggling and human trafficking. DFAT also negotiates, finalises and implements Australia’s free trade agreement (FTA) agenda and explores opportunities for FTAs with other trading partners. DFAT provides high-quality passport services which support international traveller facilitation.

Department of Health

Program 5.1: Protect the Health and Safety of the Community through Regulation


The Department of Health works with DIBP to protect the health of the Australian

community by managing health risks at the border. This includes the monitoring of

incoming travellers for symptoms of communicable disease and providing

communicable disease advice to DIBP to inform pre-migration screening policies.

Department of Human Services

Program 1.1: Services to the Community – Social Security and Welfare


The Department of Human Services supports individuals, families and communities to achieve greater self-sufficiency by providing access to payments and services on behalf of government. This includes providing assistance to people living in the community while their immigration status is resolved.


24

Department of Industry, Innovation and Science

Program 2: Growing Business Investment and Improving Business Capability


The Department of Industry contributes to policy development and advice on matters relating to intellectual property rights, trademarks, anti-dumping, preferential and non-preferential trade schemes, regulated, prohibited and restricted goods and industry assistance.

Department of the Prime Minister and Cabinet

Program 1.1: Prime Minister and Cabinet


The Department of the Prime Minister and Cabinet provides policy advice in key areas including strategic priorities, foreign, trade and aid policy and national security matters.

Program changes

Table 2: Changes to the program structures since the last portfolio budget statement.

Program No. Program title Description of change

1.3 Onshore Compliance and Detention New program name. Merged the following programs

under the former structure;

- Program 1.3 Compliance and Detention;

- Program 1.4 IMA Onshore Management; and

- The ASAS component of Program 2.4 Refugee and

Humanitarian Assistance.

1.4 IMA Offshore Management PBS program reference amended from 1.5.

1.5 Regional Cooperation PBS program reference amended from 1.6.


25

Figure 2: Changes to the program structures since the last portfolio budget statement.

2015-16 Program Structure

Outcome 1

Revised Program Structure (2016-17)

Outcome 2 (subset)

Border EnforcementProgram 1.1

(Departmental)

Border Management Program 1.2

(Administered and Departmental)

Compliance and DetentionProgram 1.3


IMA Onshore ManagementProgram 1.4


IMA Offshore ManagementProgram 1.5


Regional CooperationProgram 1.6


Border Enforcement Program 1.1

(Departmental)

Border Management Program 1.2


Onshore Compliance and DetentionProgram 1.3


IMA Offshore ManagementProgram 1.4


Regional CooperationProgram 1.5


Refugee and Humanitarian AssistanceProgram 2.4

(Administered - Payments to the Asylum Seeker Assistance

Scheme)1

1. Administered funding in 2016-17 for the Asylum Seeker Assistance Scheme will be merged into Program 1.3 Onshore Compliance and Detention from the 2016-17 financial year.


26

Budgeted expenses for Outcome 1

This table shows how much the entity intends to spend (on an accrual basis) on

achieving the outcome, broken down by program, as well as by Administered and

Departmental funding sources.

Table 2.1.1: Budgeted expenses for Outcome 1 2015-16 2016-17 2017-18 2018-19 2019-20

Estimated Budget Forward Forward Forward

actual estimate estimate estimate

$'000 $'000 $'000 $'000 $'000

Program 1.1: Border Enforcement

Departmental expenses

Departmental appropriation 1 893,903 909,703 914,074 898,506 902,661

s74 Retained revenue receipts 2 24,673 23,393 19,802 20,122 20,122

Expenses not requiring appropriation in the

Budget year 3 94,561 110,419 124,207 135,236 152,885

Departmental total 1,013,137 1,043,515 1,058,083 1,053,864 1,075,668

Total expenses for Program 1.1 1,013,137 1,043,515 1,058,083 1,053,864 1,075,668

Program 1.2: Border Management

Administered expenses

Ordinary annual services

(Appropriation Act No. 1 and Bill No. 3)9,706 8 8 8 8

Administered total 9,706 8 8 8 8





Budget year 3 27,332 25,606 27,709 26,135 22,918

Departmental total 250,129 236,995 232,638 224,949 226,462

Total expenses for Program 1.2 259,835 237,003 232,646 224,957 226,470

Program 1.3: Onshore Compliance

and Detention (revised structure)4



(Appropriation Act No. 1 and Bill No. 3)- 1,138,280 689,156 578,737 552,895


Budget year 3 - 73,142 73,144 73,146 72,171

Administered total - 1,211,422 762,300 651,883 625,066


Departmental appropriation 1 - 445,639 399,991 352,921 339,205

s74 Retained revenue receipts 2 - 8,436 6,354 6,350 6,341


Budget year 3 - 25,121 22,486 20,199 15,832

Departmental total - 479,196 428,831 379,470 361,378

Total expenses for Program1.3 (revised

structure)- 1,690,618 1,191,131 1,031,353 986,444


27

Table 2.1.1: Budgeted expenses for Outcome 1 (continued) 2015-16 2016-17 2017-18 2018-19 2019-20



$'000 $'000 $'000 $'000 $'000

Program 1.3: Compliance and

Detention (2015-16 structure)5



(Appropriation Act No. 1 and Bill No. 3)219,069 - - - -


Budget year 3 23,948 - - - -

Administered total 243,017 - - - -


Departmental appropriation 1 213,669 - - - -

s74 Retained revenue receipts 2 3,114 - - - -


Budget year 3 11,451 - - - -

Departmental total 228,234 - - - -

Total expenses for Program 1.3

(2015-16 structure)471,251 - - - -

Program 1.4: IMA Onshore

Management (2015-16 structure)5



(Appropriation Act No. 1 and Bill No. 3)841,697 - - - -


Budget year 3 46,701 - - - -

Administered total 888,398 -


Departmental appropriation 1 332,521 - - - -

s74 Retained revenue receipts 2 3,763 - - - -


Budget year 3 15,863 - - - -

Departmental total 352,147 - - - -

Total expenses for Program 1.4

(2015-16 structure)1,240,545 - - - -

Program 1.4: IMA Offshore

Management



(Appropriation Act No. 1 and Bill No. 3)965,420 829,722 314,606 337,965 327,784


Budget year 3 70,691 13,233 13,234 13,234 12,902

Administered total 1,036,111 842,955 327,840 351,199 340,686



s74 Retained revenue receipts 2 1,377 5,573 688 690 690


Budget year 3 76 70 64 58 79


Total expenses for Program 1.4 1,078,064 880,509 357,044 380,573 370,352


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$'000 $'000 $'000 $'000 $'000

Program 1.5: Regional Cooperation



(Appropriation Act No. 1 and Bill No. 3)73,498 87,761 27,196 27,878 28,575

Administered total 73,498 87,761 27,196 27,878 28,575





Budget year 3 757 697 622 560 514


Total expenses for Program 1.5 87,358 107,900 46,621 42,760 43,522

Outcome 1 Totals by appropriation type


Ordinary annual services (Appropriation

Act No. 1 and Bill No. 3)2,109,390 2,055,771 1,030,966 944,588 909,262


Budget year 3 141,340 86,375 86,378 86,380 85,073

Administered total 2,250,730 2,142,146 1,117,344 1,030,968 994,335


Departmental appropriation 1 1,709,111 1,610,671 1,558,827 1,485,760 1,481,308


Expenses not requiring appropriation in

the Budget year 3 150,040 161,913 175,088 182,188 192,228

Departmental total 1,899,460 1,817,399 1,768,181 1,702,539 1,708,121

Total expenses for Outcome 1 4,150,190 3,959,545 2,885,525 2,733,507 2,702,456

Movement of administered funds

between years 2015-16 2016-17 2017-18 2018-19 2019-20

Outcome 1:

Program 1.4: IMA Onshore Management

(2015-16 structure) 5,6 (34,477) 34,477

Total movement of administered

funds(34,477) 34,477 - - -

2015-16 2016-17

Average Staffing Level (number) 8,244 8,050

1. Departmental Appropriation combines Ordinary annual services Appropriation Act No. 1 and Bill No. 3. 2. Estimated expenses incurred in relation to receipts retained under section 74 of the PGPA Act 2013. 3. Expenses not requiring appropriation in the Budget year are made up of Depreciation Expense,

Amortisation Expense, Make Good Expenses, Audit Fees and Cost Recovery Expense. 4. This includes funding for Status Resolution Support Services which was formerly recorded under

Program 2.4 Refugee and Humanitarian Assistance. 5. 2015-16 figures are shown according to the structure in place during the 2015-16 year. The figures are

for comparison purposes only. Under the 2016-17 structure funds have moved to Program 1.3: Onshore Compliance and Detention.

6. Figures displayed as a negative (-) represent a decrease in funds and a positive (+) represent an increase in funds. The movement of funds was undertaken under the 2015-16 program structure.


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Table 2.1.3: Performance criteria for Outcome 1

Table 2.1.3 below details the performance criteria for each program associated with

Outcome 1. It also summarises how each program is delivered and where 2016-17

Budget measures have created new programs or materially changed existing

programs.

Outcome 1 – Protect Australia’s sovereignty, security and safety by managing its border, including through managing the stay and departure of all non-citizens.

Program 1.1 Border Enforcement

To protect Australia’s sovereignty, security and safety through the streamlining of legitimate trade and travel, prevention of illegal movement of people and goods, and coordination of whole-of-government efforts to detect and deter illegal activity in the maritime domain.

Delivery Mechanisms through which program 1.1 will be delivered include:

processing international air and sea passengers and crew;

providing eligible travellers with the option for self-processing and clearance through automated border control at a range of Australian international airports and seaports;

undertaking inspection and examination activity in the international mail, air cargo and sea cargo environments, to detect and prevent the import or export of prohibited items and control the movement of restricted items;

processing vessels crossing the border;

conducting land-based patrol and surveillance of the waterfront, remote areas and regional ports, including through the deployment of mobile teams;

investigating and potentially prosecuting breaches of Australian border laws; and

coordinating whole-of-government efforts to mitigate, or eliminate, the risks posed by civil maritime security threats by detecting, reporting and responding to potential or actual non-compliance with relevant laws in the Australian maritime jurisdiction.

Program 1.1 Border Enforcement - Key Performance Indicators

Key Performance Indicators

2015-16 Estimated

Actual

Percentage of passengers processed within 30 minutes of joining the inwards queue.

Number of arriving international air passenger referrals to the Department of Immigration and Border Protection.

1

Traveller satisfaction with primary line services.

Percentage of arriving travellers who successfully cleared automated border control systems.

Number of apprehensions of illegal foreign fishing vessels.1,4

Number of illegal foreign fishers apprehended and processed.1

Percentage of departing travellers who successfully cleared automated border control systems.

1

Percentage of reported vessels risk assessed at first port.

Percentage of high risk vessels where targeted operational responses were performed.

1

Number and weight of illicit tobacco in the sea cargo stream.1

92%

-

95%

40%

-

-

-

100%

-

-


30

Number of undeclared detections of conventional firearms, parts and accessories and magazines.

1,5

Value of undeclared currency.1

Number and weight of illicit drug detections.1

Percentage of referrals accepted for formal investigation.2

Percentage of high-priority cases accepted for formal investigation.

Percentage of prosecution briefs completed as the result of a formal investigation that resulted in a conviction.

3

Number of potential irregular, unregulated and unreported vessels detected in Australia’s Exclusive Economic Zone in the Southern Ocean.

1

Number of irregular, unregulated and unreported vessels boarded in the Southern Ocean.

1

Number of irregular, unregulated and unreported vessels apprehended in the Southern Ocean.

1

Number of sightings of potentially illegal foreign fishing vessels in Australian northern waters.

1,6

Ensure less than 0.015% of the total passenger and crew arrivals are refused immigration clearance at airports and seaports.

1

-

-

-

18-25%

80-90%

85-95%

-

-

-

-

0.015%

1. Performance cannot be reliably forecast. Actual results will be included in the Annual Report. 2. Formal investigations are conducted by the Investigations Division and refer to suspected breaches of

Australia’s border controls. 3. This indicator refers to prosecution briefs prepared in response to a formal investigation and dealt with by the

courts. Formal investigations are conducted by the Investigations Division. ‘Conviction’ includes guilty verdicts where no conviction is recorded.

4. The total number of apprehensions by DIBP/ABF and Defence Force assets. 5. The term ‘conventional firearms’ does not include firearm categories such as imitation, airguns, BB guns and

paintball guns, but does include all other firearms. 6. Sightings of Type 3 and 4 fishing vessels are generated from reports by Maritime Border Command

surveillance units, including DIBP/ABF and Defence Force.

Performance information

Year Performance criteria Targets

2016-17 Threats are detected ahead, at and after the border.

85%-100% of high risk vessels where targeted operational responses were performed.

The border is strengthened through the control and surveillance of the maritime domain.

3320 vessel patrol days.

Joint ABF and ADF aircraft coverage of 136 million (nm2).

The movement of people and goods is strengthened by effective regulatory and enforcement activities.

85%-95% of prosecution briefs completed as the result of a formal investigation resulted in a conviction.

Seamless border management facilitates the flow of legitimate travellers and goods.

92% of passengers processed within 30 minutes of joining the inwards queue.

Traveller satisfaction with primary line services 95% or above.

Less than 0.015% of the total passenger and crew arrivals are refused immigration clearance at airports and seaports.


31

2017-18 and beyond As per 2016-17. As per 2016-17

Purposes1 Manage the border to promote a safer, secure Australia.

Manage the movement of people and goods to ensure a strong economy.

Material changes to Program 1.1 resulting from the following measures: Nil

Note: Targets relating to key performance indicators across the forward estimates have been developed on the basis of the operational risks and environment that existed when the 2016-17 Portfolio Budget Statements were developed. Due to the dynamic nature of the operational environment, future targets may need to be varied depending on the risks faced at that time. 1. Refers to updated purposes that will be reflected in the 2016-17 Corporate Plan.

Program 1.2 Border Management

To protect Australia’s sovereignty, security and safety by developing strategy, legislation and policy that supports legitimate border movements, ensures compliance with border controls, strengthens visa and citizenship system integrity, and protects the Australian community from health risks.

Delivery Program 1.2 will be delivered by regulating and facilitating legitimate trade, migration and travel by:

development and delivery of portfolio strategy, legislation and policy, issuing broker, depot and warehouse licenses;

working with partner agencies to influence and develop policy and regulatory models in relation to community protection and consumer safety;

effective management of migration, traveller and cargo processes and information systems;

provision of migration, travel and import and export data and statistics; and

undertaking effective risk-based compliance activities to promote observance of Australian border laws as they relate to the movement of people and goods.

Program 1.2 Border Management - Key Performance Indicators


2015-16 Estimated

Actual

Further develop and effectively manage strategies to deliver on government priorities.1

Effectiveness of strategies developed in delivering priorities.1

Travellers, traders and visa holders and other entities subject to portfolio legislation demonstrate increased levels of compliance with requirements.

1

Border management strategies are developed to maximise voluntary compliance and provide robust data on border movements and the impact of management strategies.

1

Proportion of customs broker licence applications processed in accordance with client service standards.

Proportion of depot licence applications processed in accordance with client service standards.

Proportion of warehouse licence applications processed in accordance with client service standards.

-

-

-

-

100%

100%

100%

1. These indicators are not numeric in nature. Further discussion regarding performance against these indicators will be included in the Annual Report.


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Performance Information

Year Performance Criteria Targets

2016-17 Seamless border management facilitates the flow of legitimate travellers and goods.

Percentage of import declarations assessed pre-clearance through the general monitoring program that are compliant.

2

Percentage of export declarations assessed pre-clearance through the general monitoring program that are compliant.

2

Number of tariff classification rulings completed.

Number of valuation and origin rulings competed.

2

Proportion of compliance activities identifying a significant breach.

2

The movement of people and goods is strengthened by effective regulatory and enforcement activities.

More than 99% of temporary visa holder entries remain lawful whilst in Australia.

Number of Illegal Warning Notices and/or Infringements issued under Employer Sanctions, Payment for Visa and Business Sponsor Obligations legislation frameworks.

2

Percentage of prosecution briefs completed as the result of a formal investigation under Employer Sanctions, Payment for Visa and Business Sponsor Obligations legislation frameworks.

2

2017-18 and beyond As per 2016-17. As per 2016-17.

Purposes1 Manage the movement of people and goods to ensure a strong economy.


1. Refers to updated purposes that will be reflected in the 2016-17 Corporate Plan. 2. Targets cannot be forecast reliably. Actual results will be included in the Annual Report.


33

Program 1.3 Onshore Compliance and Detention To protect Australia’s sovereignty, security and safety by maximising adherence to the entry and stay requirements through an effective and appropriate program of prevention, deterrence and enforcement and resolving the immigration status of the legacy cohort of IMAs.

Delivery Program 1.3 will be delivered by regulating and facilitating legitimate trade, migration and travel by:

promoting voluntary compliance by Australian employers with employer sanctions legislation through the provision of targeted education and engagement activities;

transferring of eligible IMAs to a Regional Processing Centre (RPC);

providing services that facilitate status resolution including voluntary return to the person’s country of origin and, where appropriate, reintegration assistance packages; and

providing health and other support services for non-citizens awaiting status resolution.

Program 1.3 Onshore Compliance and Detention - Key Performance Indicators1

Key Performance Indicators 2015-16

Voluntary compliance is maintained as the primary approach to resolving breaches.

The management of non-compliance does not lead to an unacceptable increase in non-compliant activity. Employers voluntarily comply with their obligations to engage in legal work hire practices.

The immigration status of the majority of non-citizens located in the Australian community for breaches of immigration law is resolved in a timely way.

The immigration detention network meets operational requirements and is maintained to a standard that supports the health, safety and security of detainees and staff.

Non-citizens in immigration detention and in the community have access to services consistent with relevant laws and standards.

Eligible IMAs are transferred to an RPC in a safe and timely manner.

Breaches of the Code of Behaviour by non-citizens residing in the community on a bridging visa are actioned in a timely manner.

IMAs have appropriate access to services that support timely return to their country of origin.



34



2016-17 The movement of people and goods is strengthened by effective regulatory and enforcement activities.

Unlawful non-citizens seeking status resolution are appropriately accommodated based on risk.

Voluntary compliance is the primary approach to avoiding breaches of visa conditions, evidenced by:

Number of VEVO organisation checks

Number of VEVO self-checks

New VEVO registrations

Employers are encouraged to voluntarily comply through the delivery of employer awareness activities.



Material changes to Program 1.3 resulting from the following measures: 2

Onshore Immigration Detention Network — consolidation

Onshore Immigration Detention Network — enhancement

1. Refers to updated purposes that will be reflected in the 2016-17 Corporate Plan. 2. The Asylum Seeker Support – additional funding measure was terminating in the 2015-16 year and has

been extended until 2016-17. This measure existed in 2015-16 and was included in the 2015-16 performance criteria and as such does not represent a material change to the program for performance purposes.

Program 1.4 IMA Offshore Management

To protect Australia’s sovereignty, security and safety by supporting regional processing and settlement countries (partner countries) to implement the Memoranda of Understanding agreed with Australia, including building regional processing country capability to manage regional processing and settlement arrangements.


capability development for partner countries through training and mentoring;

construction and maintenance of facilities that support partner countries to manage and accommodate transferees and refugees and deliver services to these cohorts;

supporting the management of transferees and refugees residing in partner countries, including health, welfare and settlement services (as required);

supporting partner countries to determine the refugee status of transferees; and

support partner countries to voluntarily return persons or remove those found not to be refugees.


35

Program 1.4 IMA Offshore Management - Key Performance Indicators1


Services delivered are consistent with the Memoranda of Understanding and Administrative Arrangements agreed between respective regional processing and settlement countries and Australia and relevant local standards.

Facilities in regional processing countries are constructed and maintained in a manner that meets operational requirements and relevant local standards.

Refugee Status Determination capacity building support enables regional processing countries to develop and deliver a scalable and responsive framework that provides for timely resolution of status in accordance with the countries’ international obligations.

Regional settlement countries are supported to develop and deliver, needs-based settlement services to support the settlement and integration of refugees into the host societies in a durable and sustainable manner.




2016-17 Collaboration with partners within and outside Australia improves border security.

Arrangements in place that:

support the regional processing country to assess the protection claims of transferees.

support the regional processing country to accommodate and provide services, including welfare and health, to transferees pending assessment of protection claims.

support regional partners to settle transferees found to be in need of international protection.

support regional processing countries to voluntarily return or remove those found not to be refugees.


Purposes1 Manage the border to promote a safer, secure Australia.

Material changes to Program 1.4 resulting from the following measures: 2

Supporting Regional Processing Arrangements – additional funding

1. Refers to updated purposes that will be reflected in the 2016-17 Corporate Plan. 2. In accordance with the program structure in place in 2016-17.


36

Program 1.5 Regional cooperation

Protect Australia’s sovereignty, security and safety by strengthening relationships with partner governments to improve migration and border management capabilities and by working collaboratively with international organisations providing services for irregular migrants.


supporting the Bali Process by co-managing and contributing to the Regional Support Office which implements a range of practical initiatives to combat people smuggling, human trafficking and transnational crime;

supporting through the International Organisation for Migration (IOM), the management of potential illegal immigrations in Indonesia under the Regional Cooperation Arrangement (RCA) program;

working collaboratively with the international community to enhance the migration, identity, immigration intelligence and border management capabilities of partner governments;

facilitating international exchanges on approaches to trade and revenue techniques and best practice; and

enhancing international systems, information sharing and analytical capabilities to support better threat and risk assessments in the flow of people and goods.

Program 1.5 Regional Cooperation - Key Performance Indicators1


The enhanced capacity of states to manage irregular migration through the region, including that of asylum seekers.

The Regional Support Office is effectively acting as a key coordination point for migration management and increased protection capacity in the region.



37


Year Performance Criteria1 Targets

2016-17 Collaboration with partners within and outside Australia improves border security.

50% of states receiving Australian assistance have implemented processes and/or systems that have led to an improvement in the management of migration and border outcomes, including the management of refugees.

Training and capability development is successfully delivered to 1,500 counterparts globally, to enrich foreign counterpart and partner agency activities.

2017-18 and beyond As per 2016-17 As per 2016-17.

Purposes1 Manage the movement and stay of people to ensure a cohesive society.

Material changes to Program 1.5 resulting from the following measures: Nil2

1. Refers to updated purposes that will be reflected in the 2016-17 Corporate Plan. 2. All measures relating to Program 1.5 were terminating measures in the 2015-16 year but were

extended until 2016-17. These measures existed in 2015-16 and were included in the 2015-16 performance criteria and as such do not represent a material change to the program for performance purposes.


38


Outcome 2: Support a prosperous and inclusive society, and advance

Australia’s economic interests through the effective management of the visa

and citizenship programs and provision of refugee and humanitarian

assistance.

Linked Programs



Attorney-General’s Department

Program 1.1: Attorney-General’s Department Operating Expenses—Civil Justice and Legal Services

Program 1.2: Attorney-General’s Department Operating Expenses—National Security and Criminal Justice

Program 1.7: National Security and Criminal Justice


The Attorney-General’s Department contributes to policy development and advice on transnational organised crime including people smuggling and human trafficking, law enforcement matters, provision of information of national security value, firearms, counter-terrorism, prohibited and restricted goods, illegal drug interdiction, money laundering and regional operations and intercountry adoption arrangements.

Department of Education and Training

Program 2.8: Building Skills and Capability


The Department of Education works with DIBP to provide clearer pathways and improved access to training for eligible migrants and humanitarian entrants.

Department of Employment

Program 1.1: Employment Services


The Department of Employment provides the necessary incentive for job seekers to comply with their mutual obligation requirements to ensure job seekers remain active and engaged while looking for work, including eligible migrants and humanitarian entrants.


39





The Department of Foreign Affairs and Trade (DFAT) contributes to whole of government efforts bilaterally and regionally to counter people-smuggling and human trafficking. DFAT also negotiates, finalises and implements Australia’s free trade agreement (FTA) agenda and exploring opportunities for FTAs with other trading partners. DFAT provide high-quality passport services which support international traveller facilitation.

Department of Health

Program 2.1: Mental Health


The Department of Health contributes to supporting permanently resettled humanitarian entrants and those on certain visa products living in the Australian community through the provision of the Program of Assistance for Survivors of Torture and Trauma.

Department of Human Services

Program 1.1: Services to the Community – Social Security and Welfare


The Department of Human Services supports individuals, families and communities to achieve greater self-sufficiency by providing access to payments and services on behalf of government. This includes providing assistance to people living in the community while their immigration status is resolved.

Department of Social Services

Program 2.1: Families and Communities


The Department of Social Services delivers settlement support for humanitarian entrants and other eligible migrants in their first five years of life in Australia. Services promote economic and social well-being of clients by supporting them to become fully-functioning and self-reliant members of society as soon as possible after arrival in Australia.


40





Table 2.1.2: Budgeted expenses for Outcome 2

2015-16 2016-17 2017-18 2018-19 2019-20



$'000 $'000 $'000 $'000 $'000

Program 2.1: Citizenship





the Budget year 3 4,975 4,578 4,099 3,686 1,625


Total expenses for

Program 2.166,396 61,718 59,784 60,691 59,151

Program 2.2: Migration





the Budget year 3 21,336 19,366 16,962 15,241 10,179


Total expenses for

Program 2.2 279,404 262,863 254,115 232,660 219,908

Program 2.3: Visas





the Budget year 3 31,396 26,758 22,733 20,303 14,160


Total expenses for

Program 2.3381,691 366,537 347,877 329,462 318,048

Program 2.4: Refugee and

Humanitarian Assistance



Act No. 1 and Bill No. 3)77,196 51,550 33,067 32,864 33,514


the Budget year 3 - - - - -



41




$'000 $'000 $'000 $'000 $'000



s74 Retained revenue receipts 2 1,047 1,003 1,004 989 987


the Budget year 3 3,159 2,906 2,600 2,339 1,515


Total expenses for

Program 2.4175,667 153,367 131,538 133,844 134,584




Act No. 1 and Bill No. 3)77,196 51,550 33,067 32,864 33,514


the Budget year 3 - - - - -






the Budget year 3 60,866 53,608 46,394 41,569 27,479


Total expenses for Outcome 2 903,158 844,485 793,314 756,657 731,691

Movement of administered funds

between years 2015-16 2016-17 2017-18 2018-19 2019-20

Outcome 2:

Program 2.4: Refugee and

Humanitarian Assistance 4 (12,251) 12,251 - - -

Total movement of administered

funds(12,251) 12,251 - - -

2015-16 2016-17

Average Staffing Level (number) 5,045 4,880

1. Departmental Appropriation combines Ordinary annual services Appropriation Act No. 1 and Bill No. 3. 2. Estimated expenses incurred in relation to receipts retained under section 74 of the PGPA Act 2013. 3. Expenses not requiring appropriation in the Budget year are made up of Depreciation Expense,

Amortisation Expense, Make Good Expenses, Audit Fees and Cost Recovery Expense. 4. Figures displayed as a negative (-) represent a decrease in funds and a positive (+) represent an

increase in funds. The movement of funds was undertaken under the 2015-16 program structure.


42





programs.

Outcome 2 – Support a prosperous and inclusive society, and advance Australia’s economic interests through the effective management of the visa and citizenship programs and provision of refugee and humanitarian assistance.

Program 2.1 Citizenship

To support a prosperous and inclusive society through the promotion, delivery and effective management of the Australian citizenship program.


delivery of the citizenship program within the parameters set by the Government;

supporting a strong and cohesive Australian society through the promotion of a unifying citizenship;

strengthening the integrity and efficiency of citizenship systems to attract quality applicants and meet the needs of the Australian community and economy; and

promoting the value of Australian citizenship.

Program 2.1 Citizenship - Key Performance Indicators


2015-16 Estimated

Actual

Percentage of refusal decisions for Australian citizenship overturned through an appeal process.

Percentage of citizenship conferral applications decided within service delivery standards.

Less than 1%

At least 80%



2016-17 Australian citizenship is valued.

80% of citizenship conferral decisions made within service standards.

Percentage of refusal decisions for Australian citizenship overturned through an appeal process is less than 1%.

Visits to the Citizenship Wizard on DIBP’s web site reach 300,000 for the year.




1. Refers to updated purposes that will be reflected in the 2016-17 Corporate Plan.


43

Program 2.2 Migration

To support a prosperous and inclusive society and advance Australia’s economic interests through the effective management and delivery of the Skilled and Family Migration Programs.


delivering the migration program within planning levels set by the Government, and maintain program integrity and intention; and

finalising visa applications within applicable standards and according to priority processing directions.

Program 2.2 Migration - Key Performance Indicators1


The migration program supports the Government’s national security, economic and social agenda, as well as industry and business needs.

The migration program is delivered within Government targets and according to applicable priority processing directions.

Migration and temporary entry do not increase the incidence of health risks or costs to the Australian community.

Visa applications are finalised within applicable service standards.


Program 2.2 Migration - Key Performance Indicators


2015-16 Estimated

Actual

The permanent Migration Program is delivered within government planning levels.

Permanent migration does not increase the incidence of health risks or costs to the Australian community.

<190,000 visas granted

in line with government

targets.

Met by contributing to

maintaining TB rates in

Australia at <6 cases per

100,000 people.


44



2016-17 Australia’s visa programs provide a strong foundation for social cohesion.

The non-skilled component of the managed migration program is delivered within planning levels set by the Government for each category.

Australia’s visa programs are responsive to the needs of the economy.

The skilled component of the managed migration program is delivered within planning levels set by the Government for each category.

Migration and temporary entry programs do not increase risks to the safety of the Australian community.




Material changes to Program 2.2 resulting from the following measures:

Reforming the Visa and Migration Framework


Program 2.3 Visas

To advance Australia’s economic interests and respond to Australia’s changing security, economic, cultural and social needs through the effective management and delivery of temporary entry programs.


supporting Australia’s economic development and needs through sustainable growth in temporary visa programs;

ensuring temporary entry does not increase health risks or costs to the Australian community;

ensuring permanent and temporary entry does not increase risks to the security and good order of Australia or undermine the integrity of visa programs through the administration of the character provisions and cancellation powers;

increasing the use of biometrics and identity management services to facilitate the movement of legitimate travellers, and detect and deter those who pose a risk to the Australian community and national interest;

promoting a high level of confidence in the accurate identification of people entering and departing Australia and those likely to threaten the national interest;

pursuing system and capability improvements in order to effectively manage the growth in temporary entry caseloads; and

finalising visa applications within applicable standards and according to priority processing directions.


45

Program 2.3 Visas - Key Performance Indicators


The visitor program continues to support global tourism, business travel and the domestic economy.

The student program supports a sustainable international education sector, in line with the Government priorities.

Working Holiday Maker negotiations are targeted towards the Government priorities.

Temporary visa programs support the Government’s international priorities and obligations.

Temporary entry does not increase the incidence of health risks or costs to the Australian community.

Policy development and deregulatory reform to visa programs are implemented effectively and in a timely and cost-effective manner, also supporting program delivery and integrity.

Visa applications are finalised within applicable service standards.


Program 2.3 Visas - Key Performance Indicators


2015-16 Estimated

Actual

Temporary migration does not increase the incidence of health risks or costs to the Australian community.

Met by contributing to

maintaining TB rates in

Australia at <6 cases per

100,000 people.


46



2016-17 Australia’s visa programs are responsive to the needs of the economy.

The visitor visa program supports global tourism and business travel to Australia:

Number of visitor visas granted

75% of visitor visa decisions made within service standards.

The student visa program supports the international student market in Australia:

Number of student visas granted

70% of student visa decisions are made within service standards.





Reforming the Visa and Migration Framework


Program 2.4 Refugee and Humanitarian Assistance

The effective management and delivery of Australia’s Humanitarian Program reflects government priorities and Australia’s international protection obligations.


contributing to the resettlement of refugees and those in humanitarian need through the delivery of the Humanitarian Program;

resettling humanitarian entrants living in protracted or refugee like situations who are in need of protection;

providing visa pathways to those needing Australia’s protection, including through the use of temporary visas for those who sought protection in Australia after arriving in an illegal manner; and

continuing to develop policy, program design and procedures to improve the efficiency, effectiveness, accountability and integrity of the Humanitarian Program.


47

Program 2.4 Refugee and Humanitarian Assistance - Key Performance Indicators


Australia continues to be a leading resettlement country in terms of number of people resettled.

Australia’s international protection obligations are reflected in an effective onshore protection framework including articulated policies and procedures relating to the assessment of protection claims.

Progress being made regarding the processing of the legacy cohort under the new onshore protection legislation and Temporary Protection Visa (TPV) framework.

Productive working relations are maintained with international partner agencies with regard to Australia’s contribution to strengthening the international protection framework in countries other than Australia.

Australia's bilateral and multilateral activity in relation to migration and refugee issues has a positive effect on managed migration and refugee issues internationally, as evidenced by internal evaluation and review outcomes.




2016-17 Australia contributes to the global management of refugees and displaced populations.

Deliver 13,750 places in the 2016-17 Humanitarian Program.

Deliver places to Syrian and Iraqi refugees consistent with the Syrian and Iraqi Humanitarian Crisis Measure.

2017-18 and beyond As per 2016-17. Deliver places in the Humanitarian Program in line with the Government direction, at 16,250 in 2017-18 and 18,750 in 2018-19.


Material changes to Program 2.4 resulting from the following measures: Nil2

1. Refers to updated purposes that will be reflected in the 2016-17 Corporate Plan. 2. All measures relating to program 2.4 were pre-existing measures and were taken into account in the

2015-16 performance criteria. As such, there is no material change to the program for performance purposes.


48


Outcome 3: Advance Australia’s economic interests through the facilitation of

the trade of goods to and from Australia and the collection of border revenue.

Linked Programs



Austrade

Program 1.1: Promotion of Australia’s export and other international economic interests


Austrade co-operates with DIBP by providing advice on visa policy where this affects trade, tourism, international education and investment. Austrade is also the sole nominating entity for the Premium Investment Visa program and is a nominating entity for the Significant Investor Visa program, which are managed by DIBP.

Australian Taxation Office

Various Programs


DIBP collects or administers on behalf of the Australian Taxation Office relevant taxes including Goods and Services Tax, Wine Equalisation Tax, Tourist Refund Scheme and Luxury Car Tax.





The Department of Foreign Affairs and Trade (DFAT) contributes to whole of government efforts bilaterally and regionally to counter people-smuggling and human trafficking. DFAT also negotiates, finalises and implements Australia’s free trade agreement (FTA) agenda and exploring opportunities for FTAs with other trading partners. DFAT provide high-quality passport services which support international traveller facilitation.


49

Department of the Treasury

Various Programs


The Department of the Treasury provides policy advice in key areas on the design of taxation laws including customs duty, Visa Application Charges (VAC), Passenger Movement Charge (PMC), Import Processing Charge (IPC) and duty refunds.

Department of Industry, Innovation and Science

Program 2: Growing Business Investment and Improving Business Capability


The Department of Industry contributes to policy development and advice on matters relating to intellectual property rights, trademarks, anti-dumping, preferential and non-preferential trade schemes, regulated, prohibited and restricted goods and industry assistance.


50





2.1.3: Budgeted expenses for Outcome 3

2015-16 2016-17 2017-18 2018-19 2019-20



$'000 $'000 $'000 $'000 $'000

Program 3.1 Border- Revenue

Collection



(Appropriation Act No. 1 and Bill No. 3)- - - - -


Budget year 1 13,500 13,500 13,500 13,500 13,500






Budget year 1 9,728 9,525 2,199 2,193 168


Total expenses for

Program 3.1 91,268 86,937 80,481 80,698 75,958

Program 3.2 Trade Faciliation

and Industry Engagement



s74 Retained revenue receipts 3 461 462 462 463 463


Budget year 1 8,750 7,407 6,663 5,970 5,495


Total expenses for

Program 3.2 53,507 59,978 65,139 65,024 63,049




(Appropriation Act No. 1 and Bill No. 3)- - - - -


Budget year 1 13,500 13,500 13,500 13,500 13,500



51

2.1.3: Budgeted expenses for Outcome 3 (continued)

2015-16 2016-17 2017-18 2018-19 2019-20



$'000 $'000 $'000 $'000 $'000





Budget year 1 18,478 16,932 8,862 8,163 5,663


Total expenses for Outcome 3 144,775 146,915 145,620 145,722 139,007

2015-16 2016-17

Average Staffing Level (number) 461 515

1. Expenses not requiring appropriation in the Budget year are made up of Depreciation Expense, Amortisation Expense, Make Good Expenses, Audit Fees and Cost Recovery Expense.

2. Departmental Appropriation combines 'Ordinary annual services Appropriation Act No. 1 and Bill No. 3. 3. Estimated expenses incurred in relation to receipts retained under section 74 of the PGPA Act 2013.





programs.

Outcome 3 – Advance Australia’s economic interests through the facilitation of the trade of goods to and from Australia and the collection of border revenue.

Program 3.1 Border Revenue Collection

To advance Australia’s economic interests through the effective collection and administration of customs duty and border charges.


providing assurance that border revenue administered by DIBP and revenue collected on behalf of other agencies is correctly assessed, reported and paid;

providing assurance that revenue is protected by ensuring the correct application of refunds, concession and exemptions;

undertaking effective risk-based investigations and compliance activities, to promote observance of Australian border laws as they relate to revenue reporting and payment obligations;

collecting and administering the Passenger Movement Charge; and

administering the Tourist Refund Scheme.


52

Program 3.1 Border-Revenue Collection - Key Performance Indicators


2015-16 Estimated

Actual

Proportion of refunds under the Refund Scheme delivered in accordance with client service standards.

Proportion of drawbacks delivered in accordance with client service standards.

Number of external merit and judicial review applications on refund and drawback claims finalised during the performance period.

1

Number of external merit and judicial review applications finalised that overturn a decision of refund or drawback claims.

1,2

Number of external merit and judicial review applications finalised during the performance period on a decision made under Part XVA of the Customs Act 1901.

1,2

Number of external merit and judicial review applications finalised that overturned a decision under part XVA of the Customs Act 1901.

1,2

Value of revenue understatements identified from investigation and compliance activities.

1

90%

90%

-

-

-

-

-

1. Targets cannot be forecast reliably. Actual results will be included in the Annual Report. 2. Subject to change following the enactment of the Australian Border Force Bill 2015.



2016-17 The collection of border revenue is managed and enhanced.

Percentage of refunds under the Refund Scheme that are delivered in accordance with client service standards.

Percentage of drawbacks delivered in accordance with client service standards.

Number of Infringement notices served.






53

Program 3.2 Trade Facilitation and Industry Engagement

To advance Australia’s economic interests by co-designing services and policies that reduce the impact on legitimate movement of goods, and supports the Government’s trade agenda.


development and delivery of portfolio strategy, legislation and policy, to support the facilitation of legitimate movement;

provision of tariff classification, valuation and rules of origin advice services to importers and exporters;

delivering the Australian Trusted Trader Programme; and

provision of expert advice, support and guidance material for industry to support import and export of legitimate goods.

Program 3.2 Trade Facilitation and Industry Engagement - Key Performance Indicators


2015-16 Estimated

Actual

Proportion of tariff classification, valuation and rules of origin advices completed in accordance with client service standards.

Number of external merit and judicial review applications on matters including tariff classification under Schedule 4 of the Customs Tariff Act, valuation of rules of origin finalised during the performance period the duty was paid under protest under section 167 of the Customs Act 1901.

1,2

Number of external merit and judicial review applications finalised that overturn an administrative review decision where the duty was paid under protest.

1

Availability of electronic cargo systems to clients (excluding scheduled outages).

Proportion of electronically lodged cargo documents where a response message is transmitted within five minutes.

1

85%

-

-

99.70%

-

1. Targets cannot be forecast reliably. Actual results will be included in the Annual Report. 2. Subject to change following the enactment of the Australian Border Force Bill 2015.


54



2016-17 Effective partnerships both within and outside Australia build a strong economy.

85% of classification, valuation and rules of origin advices completed within service standards.


Participants in the ATT Programme include businesses considered as small medium enterprise; regional Australian; service providers; and large value/volume traders.

2017-18 and beyond Effective partnerships both within and outside Australia build a strong economy.

85% of classification, valuation and rules of origin advices completed within service standards.


Participants in the ATT Programme will be entities that comprise 50% of value and 30% of volume of all two way trade.



Australian Trusted Trader Programme



55

Section 3: Budgeted financial statements

Section 3 presents budgeted financial statements which provide a comprehensive

snapshot of entity finances for the 2016-17 budget year, including the impact of budget

measures and resourcing on financial statements.

3.1 BUDGETED FINANCIAL STATEMENTS

3.1.1 Explanatory notes and analysis of budgeted financial statements

An analysis of the primary source of movements between the financial statements

published in the 2015-16 Portfolio Additional Estimates Statements (PAES) and the

2016-17 Portfolio Budget Statements is provided below.

Departmental

Budgeted departmental comprehensive income statement

DIBP is budgeting for a break-even departmental operating result in 2016-17, adjusted

for depreciation and amortisation expense.

This statement presents the expected financial result for DIBP and identifies expenses

and revenues on a full accrual basis.

Expenses

In 2016-17, total departmental expenses are expected to decrease from $2,856.7 million

to $2,743.7 million, a decrease of $113.0 million. This movement reflects an increase of

$19.4 million due to the impact of new Budget measures including $11.6 million for

Australian Trusted Trader Programme, being offset by a decrease in expenses of

$132.4 million from other variations and decisions from previous budgets.

Further details of the additional funding for 2016-17 for new measures are provided in

the tables presented in Section 1 of this document.


56

Figure 3: Total departmental expenses as at 2016-17 Budget.

Income

In 2016-17, total departmental revenue is expected to decrease from $2,627.3 million to

$2,511.3 million. The movement of $116.0 million is primarily due to a decrease in

Revenue from Government of $116.9 million offset by a slight increase in DIBP’s own

source income of $0.9 million.

Budgeted departmental balance sheet

This statement reports the financial position of the department, its assets, liabilities and

equity.

In 2016-17, total departmental assets are expected to increase from $1,976.0 million to

$2,061.2 million. The movement of $85.2 million is due to capital investment being

higher than the expected depreciation expenses. The Government has invested in a

number of reform focussed New Policy Proposals over recent Budget cycles, leading to

higher capital expenditure. Total payables are expected to increase by $12.4 million

reflecting an increase in supplier payments and provisions.

Equity is also expected to increase from $1,228.4 million to $1,313.7 million. The

increase of $85.3 million in departmental equity mainly reflects the increases in

contributed equity of $317.7 million, reduced by depreciation and amortisation.


57

Budgeted departmental statement of cash flows

The cash flow statement reports the extent and nature of cash flows, grouped

according to operating, investing and financing activities.

The budgeted cash flows reflect the impact of new measures, changes to own source

revenue and changes in expenses and capital investment as reported in the income

statement and balance sheet at Tables 3.1 and 3.2.

Capital budget statement—departmental

This statement reports the forward plan for capital expenditure.

Total capital appropriations have reduced in 2016-17 as a result of a reduction in

capital measures offset by indexation movements. Capital appropriations for the

Departmental Capital Budget, being appropriated for asset replacement, remain

relatively constant over the forward estimates.

Figure 4: Total departmental capital appropriations as at 2016-17 Budget.

Statement of asset movements

This statement reports the budgeted movements by asset class of DIBP’s non-financial

assets during the current financial year.

The increase in the estimated net book balance from 1 July 2016 to 30 June 2017 is due

to the net impact of increases in asset purchases of $317.7 million being offset by


58

depreciation and amortisation expense of $232.5 million. Investment in new assets is

the result of capital measures and Departmental Capital Budget.

Administered

Schedule of budgeted income and expenses administered on behalf of

government

This schedule identifies the main revenue and expense items administered by DIBP on

behalf of the Government.

Expenses

In 2016-17, administered expenses are expected to decrease from $2,341.4 million in 2015-16 to $2,207.2 million. The decrease in administered expenses reflects a reduced number of unlawful non-citizens being managed by DIBP since last year, and more efficient and effective use of detention facilities.

Figure 5: Administered expenses as at 2016-17 Budget.


59

Income

In 2016-17, DIBP will administer the collection of revenue on behalf of the Government of an estimated $17,486.7 million, which is an increase of $740.8 million compared to 2015-16 estimates.

A change to the classification of the Visa Application Charge (VAC) revenue was agreed as part of the 2015-16 Mid Year Economic Fiscal Outlook (MYEFO) process. The VAC revenue was reclassified from non-taxation to taxation. The reclassification has no impact on the total revenue estimates figures.

Figure 6: Revenues administered on behalf of the Government as at 2016-17 Budget.

The major drivers that have contributed to the increase in the estimates between 2015-16 and 2016-17 are outlined below.

Customs Duty

In 2016–17 DIBP estimates that it will collect $14,009.2 million in customs duty, an increase of $580.6 million (or 4.32%) over the 2015–16 estimates. This net increase is predominately due to the decrease in duty revenue associated with the Free Trade Agreements (FTAs) offset by the significant increase in duty revenue related to the ongoing transition of tobacco products away from domestic production to overseas imports. The movement in the forward estimate for Customs Duty is a result of the


60

Tobacco excise – measures to improve health outcomes and combat illicit tobacco measure agreed as part of the 2016-17 Budget process.

Visa Application Charge

Revenue from VAC is expected to increase to $2,027.7 million in 2016-17, an increase of $79.4 million (or 4.07%) over the 2015-16 estimate. The increase is primarily due to the expected growth in visa applications.

Other Taxes (Passenger Movement Charge and Import Processing Charge)

The Other Taxes estimate for 2016-17 has increased to $1,384.1 million from an estimated $1,308.9 million in 2015-16. The increase of $75.2 million (or 5.74%) is due to increases in the revenue estimates for both the Passenger Movement Charge (PMC) and Import Processing Charge (IPC). The expected increase in collections of the PMC generally aligns with the expected growth in international passenger movements. The estimated increase in IPC is primarily due to the expected growth in imports which have the IPC applied.

Non-Taxation Revenue

Non taxation Revenue is comprised of Sale of goods and services; Fees and Fines and Other revenue. The estimate for 2016-17 is $65.7 million, an increase of $5.7 million (or 9.50%) over the 2015-16 estimate. This increase is due to the full year effect of the change in Citizenship Fee revenue stemming from the Cost Recovery of Citizenship and adjustment of Visa Application Charges measure agreed as part of the 2015-16 Budget process.

Schedule of budgeted assets and liabilities administered on behalf of

government

This schedule reports assets and liabilities administered by DIBP on behalf of the

Government.

In 2016-17, total administered assets are expected to increase by $54.3 million from

$2,087.7 million to $2,142.0 million. The movement is due to the net increase in non-

financial assets, being mainly immigration detention facilities, offset by a slight

reduction in receivables.

Schedule of budgeted administered cash flows

This schedule shows the cash flows administered on behalf of the government. The

cash flows largely reflect the transactions of the schedule of income and expenses.

The budgeted cash flows reflect the impact of the expected increase in tax income

collected being offset by an increase in cash to the Official Public Account to be used

for Appropriations.


61

Schedule for administered capital budget

This statement reports the forward plan for capital expenditure.

Total capital appropriations have reduced in 2016-17 as a result of slight reductions to

both capital measures and the Administered Capital Budget.

Statement of administered asset movements

This statement reports the budgeted movements by asset class of Administered

non-financial assets during the 2016-17 financial year.

The increase in the estimated net book balance from 1 July 2016 to 30 June 2017 is due

to the net impact of increases in expected asset purchases of $147.6 million being offset

by depreciation and amortisation expense of $74.3 million.


62

3.2.1 BUDGETED FINANCIAL STATEMENTS TABLES

Table 3.1: Comprehensive income statement (showing net cost of services) for the period ended 30 June

2015-16

Estimated

actual

$'000

2016-17

Budget

$'000

2017-18

Forward

estimate

$'000

2018-19

Forward

estimate

$'000

2019-20

Forward

estimate

$'000

EXPENSES

Employee benefits 1,455,688 1,355,668 1,336,846 1,318,787 1,290,836

Supplier 1,171,625 1,155,628 1,093,358 1,007,847 1,015,599

Grants - - - - -

Depreciation and amortisation 229,384 232,453 230,344 231,920 225,370

Finance costs - - - - -

Write-down & impairment of assets - - - - -

Losses from asset sales - - - - -

Other expenses - - - - -

Total expenses 2,856,697 2,743,749 2,660,548 2,558,554 2,531,805

LESS:

OWN-SOURCE INCOME

Own-source revenue

Sale of goods and rendering of services 112,126 106,780 107,092 110,437 113,906

Rental income 3,595 3,595 3,595 3,892 3,855

Royalties 2,700 2,700 2,700 2,700 2,700

Other 35,744 41,937 34,459 34,460 34,436

Total own-source revenue 154,165 155,012 147,846 151,489 154,897

Gains

Sale of assets - - - - -

Other 34 33 33 33 33

Total gains 34 33 33 33 33

Total own-source income 154,199 155,045 147,879 151,522 154,930

Net (cost of)/contribution by services 2,702,498 2,588,704 2,512,669 2,407,032 2,376,875

Revenue from Government 2,473,114 2,356,251 2,282,325 2,175,112 2,151,505

Surplus/(deficit) attributable to the

Australian Government (229,384) (232,453) (230,344) (231,920) (225,370)

OTHER COMPREHENSIVE INCOME

Changes in asset revaluation surplus - - - - -

Total other comprehensive income - - - - -

Total comprehensive income (loss) (229,384) (232,453) (230,344) (231,920) (225,370)

Total comprehensive income/(loss)

attributable to the Australian Government (229,384) (232,453) (230,344) (231,920) (225,370)


63

Table 3.1: Comprehensive income statement (showing net cost of services) for the period ended 30 June

2015-16

$'000

2016-17

$'000

2017-18

$'000

2018-19

$'000

2019-20

$'000

Total comprehensive income/(loss)

excluding depreciation/amortisation

expenses previously funded through

revenue appropriations.

- - - - -

less depreciation/amortisation expenses

previously funded through revenue

appropriations1

229,384 232,453 230,344 231,920 225,370

Total comprehensive income/(loss) - as

per the statement of comprehensive

income (229,384) (232,453) (230,344) (231,920) (225,370)

1. From 2010-11, the Government introduced net cash appropriation arrangements where Bill 1 revenue appropriations for the depreciation/amortisation expenses of non-corporate Commonwealth entities (and select corporate Commonwealth entities) were replaced with a separate capital budget (the Departmental Capital Budget, or DCB) provided through Bill 1 equity appropriations. For information regarding DCBs, please refer to Table 3.5 Departmental Capital Budget Statement.

Note: This statement has been prepared on Australian Accounting Standards basis.


64

Table 3.2: Budgeted departmental balance sheet (as at 30 June)

2015-16

Estimated

actual

$'000

2016-17

Budget

$'000

2017-18

Forward

estimate

$'000

2018-19

Forward

estimate

$'000

2019-20

Forward

estimate

$'000

ASSETS

Financial assets

Cash and cash equivalents 6,547 6,547 6,547 6,547 6,547

Trade and other receivables 523,484 523,484 523,484 523,484 523,484

Other financial assets 43,248 43,248 43,248 43,248 43,248

Total financial assets 573,279 573,279 573,279 573,279 573,279

Non-financial assets

Land and buildings 215,880 224,762 211,323 217,330 216,316

Property, plant and equipment 658,195 686,050 710,881 681,408 628,804

Intangibles 468,236 516,745 529,557 533,283 529,132

Inventories 12,813 12,813 12,813 12,813 12,813

Other non-financial assets 47,567 47,567 47,567 47,567 47,567

Total non-financial assets 1,402,691 1,487,937 1,512,141 1,492,401 1,434,632

Total assets 1,975,970 2,061,216 2,085,420 2,065,680 2,007,911

LIABILITIES

Payables

Suppliers 76,705 76,706 76,706 76,706 76,706

Other payables 168,161 180,537 173,816 173,816 173,816

Total payables 244,866 257,243 250,522 250,522 250,522

Interest bearing liabilities

Leases 389 389 389 389 389

Total interest bearing liabilities 389 389 389 389 389

Provisions

Employee provisions 462,103 449,726 456,446 456,446 456,446

Other provisions 40,195 40,195 40,195 40,195 40,195

Total provisions 502,298 489,921 496,641 496,641 496,641

Total liabilities 747,553 747,553 747,552 747,552 747,552

Net assets 1,228,417 1,313,663 1,337,868 1,318,128 1,260,359

EQUITY*

Parent entity interest

Contributed equity 2,109,709 2,427,407 2,681,955 2,894,135 3,061,736

Reserves 245,269 245,269 245,269 245,269 245,269

Retained surplus - - - - -

(accumulated deficit) (1,126,561) (1,359,013) (1,589,356) (1,821,276) (2,046,646)

Total parent entity interest 1,228,417 1,313,663 1,337,868 1,318,128 1,260,359

Total Equity 1,228,417 1,313,663 1,337,868 1,318,128 1,260,359

* Equity is the residual interest in assets after the deduction of liabilities. Note: This statement has been prepared on Australian Accounting Standards basis.


65

Table 3.3: Departmental statement of changes in equity — summary of movement (Budget year 2016-17)

Retained Asset Contributed Total

earnings revaluation equity/ equity

reserve capital

$'000 $'000 $'000 $'000

Opening balance as at 1 July 2016

Balance carried forward from previous period (1,126,561) 245,269 2,109,709 1,228,417

Adjusted opening balance (1,126,561) 245,269 2,109,709 1,228,417

Comprehensive income

Other comprehensive income - - - -

Surplus (deficit) for the period (232,453) - - (232,453)

Total comprehensive income (232,453) - - (232,453)

of which:

Attributable to the Australian Government (232,453) - - (232,453)

Transactions with owners

Contributions by owners

Equity injection

Equity Injection - Appropriation - - 197,179 197,179

Departmental Capital Budget (DCB) - - 120,519 120,519

Restructuring

Sub-total transactions with owners - - 317,698 317,698

Estimated closing balance as at 30 June

2017(1,359,013) 245,269 2,427,407 1,313,663

Closing balance attributable to the

Australian Government(1,359,013) 245,269 2,427,407 1,313,663



66

Table 3.4: Budgeted departmental statement of cash flows (for the period ended 30 June)

2015-16

Estimated

actual

$'000

2016-17

Budget

$'000

2017-18

Forward

estimate

$'000

2018-19

Forward

estimate

$'000

2019-20

Forward

estimate

$'000

OPERATING ACTIVITIES

Cash received

Appropriations 2,495,967 2,355,236 2,282,358 2,175,091 2,151,505

Sale of goods and rendering of services 121,766 115,642 113,821 117,612 125,710

Net GST received 105,590 103,049 97,512 90,485 90,590

Other 28,001 34,972 27,995 27,996 25,527

Total cash received 2,751,324 2,608,899 2,521,686 2,411,184 2,393,332

Cash used

Employees 1,445,110 1,367,010 1,327,052 1,307,072 1,280,820

Suppliers 1,306,214 1,241,888 1,194,633 1,104,111 1,112,511

Borrowing costs - - - - -

Other - - - - -

Total cash used 2,751,324 2,608,899 2,521,686 2,411,184 2,393,332

Net cash from/(used by) operating

activities- - - - -

INVESTING ACTIVITIES

Cash received

Proceeds from sales of property, plant

and equipment - - - - -

Total cash received - - - - -

Cash used

Purchase of property, plant and

equipment and intangibles 328,857 317,698 254,548 194,537 167,601

Total cash used 328,857 317,698 254,548 194,537 167,601

Net cash from/(used by) investing

activities(328,857) (317,698) (254,548) (194,537) (167,601)

FINANCING ACTIVITIES

Cash received

Contributed equity 328,857 317,698 254,548 194,537 167,601

Total cash received 328,857 317,698 254,548 194,537 167,601

Cash used

Repayment of borrowings - - - - -

Other - - - - -

Total cash used - - - - -

Net cash from/(used by) financing

activities328,857 317,698 254,548 194,537 167,601

Net increase/(decrease) in cash held - - - - -

Cash and cash equivalents at the

beginning of the reporting period6,547 6,547 6,547 6,547 6,547

Cash and cash equivalents at the end

of the reporting period6,547 6,547 6,547 6,547 6,547



67

Table 3.5: Departmental capital budget statement (for the period ended 30 June) 2015-16

Estimated

actual

$'000

2016-17

Budget

$'000

2017-18

Forward

estimate

$'000

2018-19

Forward

estimate

$'000

2019-20

Forward

estimate

$'000

NEW CAPITAL APPROPRIATIONS

Capital budget - Bill 1 (DCB) 116,639 120,519 116,944 118,306 119,342

Equity injections - Bill 2 212,218 197,179 137,604 76,231 48,259

Total new capital appropriations 328,857 317,698 254,548 194,537 167,601

Provided for:

Purchase of non-financial assets 328,857 317,698 254,548 194,537 167,601

Total items 328,857 317,698 254,548 194,537 167,601

PURCHASE OF NON-FINANCIAL ASSETS

Funded by capital appropriations 1 212,218 197,179 137,604 76,231 48,259

Funded by capital appropriation - DCB 2 116,639 120,519 116,944 118,306 119,342

TOTAL 328,857 317,698 254,548 194,537 167,601

1. Includes both current and prior Act 2 and Bills 4/6 appropriations and special capital appropriations. 2. Does not include annual finance lease costs. Includes purchase from current and previous years' DCBs. Note: Capital funds of $7.4 million has been moved from 2015-16 to 2016-17. This statement has been prepared on Australian Accounting Standards basis.


68

Table 3.6: Statement of asset movements (Budget year 2016-17)

Asset Category (as appropriate)

Land Buildings Other Computer Total

property, software

plant and and

equipment Intangibles

$'000 $'000 $'000 $'000 $'000

As at 1 July 2016

Gross book value 23,365 224,021 736,769 1,409,425 2,393,580

Accumulated depreciation

/amortisation and impairment - (31,506) (78,574) (941,189) (1,051,269)

Opening net book balance 23,365 192,515 658,195 468,236 1,342,311

CAPITAL ASSET ADDITIONS

Estimated expenditure on new or

replacement assets

By purchase - appropriation equity1 - 40,736 103,495 173,467 317,698

Total additions - 40,736 103,495 173,467 317,698

Other movements

Depreciation/amortisation expense - (31,854) (75,640) (124,959) (232,453)

Other - - - - -

Total other movements - (31,854) (75,640) (124,959) (232,453)

As at 30 June 2017

Gross book value 23,365 264,757 840,264 1,582,893 2,711,279

Accumulated depreciation/ amortisation

and impairment - (63,360) (154,214) (1,066,148) (1,283,722)

Closing net book balance 23,365 201,397 686,050 516,745 1,427,557

1. 'Appropriation equity' refers to equity injections appropriations provided through Appropriation Bill (No. 2) 2016-17.



69

Table 3.7: Schedule of budgeted income and expenses administered on behalf of Government (for the period ended 30 June)

2015-16

Estimated

actual

$'000

2016-17

Budget

$'000

2017-18

Forw ard

estimate

$'000

2018-19

Forw ard

estimate

$'000

2019-20

Forw ard

estimate

$'000

EXPENSES

Supplier 1,919,199 1,836,903 814,306 731,773 690,975

Grants and Subsidies 7,616 6,711 7,211 862 862

Personal benefits 259,771 263,707 242,516 244,817 250,939

Depreciation and amortisation 129,233 74,268 74,271 74,273 72,966

Write-dow n and impairment of assets 25,607 25,607 25,607 25,607 25,607

Other expenses - - - - -

Total expenses administered on

behalf of Government2,341,426 2,207,196 1,163,911 1,077,332 1,041,349

LESS:

OWN-SOURCE INCOME

Taxation revenue

Customs duty 13,428,650 14,009,200 14,619,250 16,139,450 17,559,450

Visa Application Charges 1,948,355 2,027,711 2,068,327 2,109,678 2,143,659

Other taxes 1,308,903 1,384,051 1,443,752 1,506,472 1,569,723

Total taxation revenue 16,685,908 17,420,962 18,131,329 19,755,600 21,272,832

Non-taxation revenue

Sale of goods and rendering of

services2,500 2,500 2,500 2,500 2,500

Fees and f ines 44,161 48,066 48,241 48,241 50,520

Other revenue 13,383 15,182 19,462 19,149 19,335

Total non-taxation revenue 60,044 65,748 70,203 69,890 72,355

Total own-source revenue

administered on behalf of

Government

16,745,952 17,486,710 18,201,532 19,825,490 21,345,187

Gains

Reversal of previous asset w rite-

dow ns and impairments

Other gains - - - 8,598 -

Total gains administered on behalf

of Government- - - 8,598 -

Total own-sourced income

administered on behalf of

Government

16,745,952 17,486,710 18,201,532 19,834,088 21,345,187

Net cost of/(contribution by)

services14,404,526 15,279,514 17,037,621 18,756,756 20,303,838

Surplus (deficit) after income tax 14,404,526 15,279,514 17,037,621 18,756,756 20,303,838

OTHER COMPREHENSIVE INCOME

Items not subject to subsequent

reclassification to profit or loss

Changes in asset revaluation surplus - - - - -

Total other comprehensive income - - - - -

Total comprehensive income (loss) 14,404,526 15,279,514 17,037,621 18,756,756 20,303,838



70

Table 3.8: Schedule of budgeted assets and liabilities administered on behalf of Government (as at 30 June)

2015-16

Estimated

actual

$'000

2016-17

Budget

$'000

2017-18

Forward

estimate

$'000

2018-19

Forward

estimate

$'000

2019-20

Forward

estimate

$'000

ASSETS

Financial assets

Cash and cash equivalents 23,926 23,926 23,926 23,926 23,926

Taxation receivable 271,717 258,217 274,717 291,217 297,717

Trade and other receivables 23,513 17,948 12,383 29,887 17,780

Other financial assets 11,620 11,620 11,620 11,620 11,620

Total financial assets 330,776 311,711 322,646 356,650 351,043

Non-financial assets

Land and buildings 1,591,096 1,668,945 1,629,178 1,569,822 1,525,268

Property, plant and equipment 165,166 160,673 151,126 141,588 133,521

Intangibles - - - - -

Other non-financial assets 661 661 661 661 661

Total non-financial assets 1,756,923 1,830,279 1,780,965 1,712,071 1,659,450

Total assets administered on behalf

of Government2,087,699 2,141,990 2,103,611 2,068,721 2,010,493

LIABILITIES

Payables

Suppliers 14,520 14,520 14,520 14,520 14,520


Grants - - - - -

Other payables 267,566 267,566 267,566 267,566 267,566

Total payables 291,749 291,749 291,749 291,749 291,749

Interest bearing liabilities

Loans 62,578 62,578 62,578 62,578 62,578

Deposits 1,413 1,413 1,413 1,413 1,413

Total interest bearing liabilities 63,991 63,991 63,991 63,991 63,991

Provisions

Other provisions 20,032 20,032 20,032 20,032 20,032

Total provisions 20,032 20,032 20,032 20,032 20,032

Total liabilities administered on behalf

of Government375,772 375,772 375,772 375,772 375,772

Net assets/(liabilities) 1,711,927 1,766,218 1,727,839 1,692,949 1,634,721



71

Table 3.9: Schedule of budgeted administered cash flows (for the period ended 30 June)

2015-16

Estimated

actual

$'000

2016-17

Budget

$'000

2017-18

Forw ard

estimate

$'000

2018-19

Forw ard

estimate

$'000

2019-20

Forw ard

estimate

$'000

OPERATING ACTIVITIES

Cash received

Sales of goods and rendering of

services61,249 65,104 65,279 51,606 60,427

Taxes 16,984,786 17,719,829 18,400,205 20,024,476 21,675,332

Net GST received 94,818 73,870 60,385 90,251 92,294

Other 11,207 5,275 9,555 9,242 9,428

Total cash received 17,152,060 17,864,078 18,535,424 20,175,575 21,837,481

Cash used

Grant - - - - -

Subsidies paid 7,616 6,711 7,211 862 862


Suppliers 1,999,882 1,899,979 825,254 817,950 783,269

Other 420,000 420,000 420,000 420,000 420,000

Total cash used 2,698,385 2,597,108 1,502,192 1,483,629 1,455,070

Net cash from/(used by)

operating activities14,453,675 15,266,970 17,033,232 18,691,946 20,382,411

INVESTING ACTIVITIES

Cash received

Proceeds from sale of property,

plant and equipment and intangibles- - - 23,069 -

Total cash received - - - 23,069 -

Cash used

Purchase of property, plant and

equipment and intangibles202,754 147,624 24,957 19,850 20,345

Total cash used 202,754 147,624 24,957 19,850 20,345

Net cash from/(used by)

investing activities(202,754) (147,624) (24,957) 3,219 (20,345)

FINANCING ACTIVITIES

Cash received

Capital injections 202,754 147,624 24,957 19,850 20,345

Total cash received 202,754 147,624 24,957 19,850 20,345

Net cash from (used by)

financing activities202,754 147,624 24,957 19,850 20,345

Net increase (decrease) in cash 14,453,675 15,266,970 17,033,232 18,715,015 20,382,411


72

Table 3.9: Schedule of budgeted administered cash flows (for the period ended 30 June) (continued)

2015-16

Estimated

actual

$'000

2016-17

Budget

$'000

2017-18

Forw ard

estimate

$'000

2018-19

Forw ard

estimate

$'000

2019-20

Forw ard

estimate

$'000

Cash and cash equivalents at

beginning of reporting period23,926 23,926 23,926 23,926 23,926

Cash from Official Public Account for:

- Appropriations 2,158,811 2,017,013 935,582 1,379,351 1,362,776

Total cash from Official Public

Account2,182,737 2,040,939 959,508 1,403,277 1,386,702

Cash to Official Public Account for:

- Appropriations 16,612,486 17,283,983 17,968,814 20,094,366 21,745,187

Total cash to Official Public 16,612,486 17,283,983 17,968,814 20,094,366 21,745,187

Cash and cash equivalents at end

of reporting period23,926 23,926 23,926 23,926 23,926



73

Table 3.10: Administered capital budget statement (for the period ended 30 June)

2015-16

Estimated

actual

$'000

2016-17

Budget

$'000

2017-18

Forward

estimate

$'000

2018-19

Forward

estimate

$'000

2019-20

Forward

estimate

$'000

NEW CAPITAL APPROPRIATIONS

Capital budget - Bill 1 (ACB) 26,098 18,856 19,367 19,850 20,345

Administered Assets and Liabilities

- Bill 2 140,350 124,074 5,590 - -

Total new capital appropriations 166,448 142,930 24,957 19,850 20,345 - - - -

Provided for:

Purchase of non-financial assets 166,448 142,930 24,957 19,850 20,345

Total Items 166,448 142,930 24,957 19,850 20,345 - - - -

PURCHASE OF NON-FINANCIAL

ASSETS

Funded by capital appropriations1 181,350 124,074 5,590 - -

Funded by capital appropriation - ACB2

21,404 23,550 19,367 19,850 20,345

TOTAL 202,754 147,624 24,957 19,850 20,345

1. Includes both current Bill 2 and prior Act 2/4/6 appropriations and special capital appropriations. 2. Does not include annual finance lease costs. Includes purchases from current and previous years'

Administered Capital Budgets (ACBs). Note: Capital funds of $70.0 million has been moved from 2015-16 to 2016-17. This statement has been prepared on Australian Accounting Standards basis.


74

Table 3.11: Statement of administered asset movements (Budget year 2016-17) Asset Category (as appropriate)

Land

$'000

Buildings

$'000

Other

property,

plant and

equipment

$'000

Computer

software

and

intangibles

$'000

Total

$'000

As at 1 July 2016

Gross book value 64,456 1,647,303 176,007 - 1,887,766

Accumulated depreciation/amortisation and

impairment - (120,663) (10,841) - (131,504)

Opening net book balance 64,456 1,526,640 165,166 - 1,756,262

CAPITAL ASSET ADDITIONS

Estimated expenditure on new or

replacement assets

By purchase - appropriation equity 1 - 141,618 6,006 - 147,624

Total additions - 141,618 6,006 - 147,624

Other movements

Depreciation/amortisation expense - (63,769) (10,499) - (74,268)

Restructuring - - - - -

Total other movements - (63,769) (10,499) - (74,268)

As at 30 June 2017

Gross book value 64,456 1,788,921 182,013 - 2,035,390

Accumulated depreciation/amortisation and

impairment - (184,432) (21,340) - (205,772)

Closing net book balance 64,456 1,604,489 160,673 - 1,829,618

1. 'Appropriation equity' refers to Administered Assets and Liabilities appropriations provided through Appropriation Bill (No.2) 2016-17.


Glossary

75

PORTFOLIO GLOSSARY

Term Meaning

Administered items Expenses, revenues, assets or liabilities managed by

agencies on behalf of the Commonwealth. Agencies

do not control administered items. Administered

expenses include grants, subsidies and benefits. In

many cases, administered expenses fund the

delivery of third party agencies.

Additional estimates Where amounts appropriated at Budget time are

insufficient, Parliament may appropriate more

funds to portfolios through the Additional

Estimates Acts.

Appropriation An authorisation by Parliament to spend monies

from the Consolidated Revenue Fund, for a

particular purpose.

Annual appropriation Two appropriation Bills are introduced into

Parliament in May and comprise the Budget for the

financial year beginning 1 July. Further Bills are

introduced later in the financial year as part of the

Additional Estimates. Parliamentary Departments

have their own appropriations.

Consolidated Revenue Fund Section 81 of the Constitution stipulates that all

revenue raised or money received by the

Commonwealth forms the one Consolidated

Revenue Fund (CRF). The CRF is not a bank

account. The Official Public Accounts reflects most

of the operations of the CRF.

Departmental items Assets, liabilities, revenues and expenses that are

controlled by the agency in providing program

outputs. Departmental items would generally

include computers, plant and equipment, assets

used by agencies in providing goods and services

and most employee expenses, supplier costs and

other administrative expenses incurred.

Glossary

76

Depreciation Apportionment of an asset’s capital value as an

expense over its estimated useful life to take account

of normal usage, obsolescence, or the passage of

time.

Equity or net assets Residual interest in the assets of an entity after

deduction of its liabilities.

Expense Total value of all of the resources consumed in

producing goods and services or the loss of future

economic benefits in the form of reductions in assets

or increases in liabilities of an entity.

PGPA Act The Public Governance, Performance and Accountability

Act 2013

Migration Act Migration Act 1958.

Special account Balances existing within the CRF that are supported

by standing appropriations (FMA Act section 20

and 21). Special Accounts allow money in the CRF

to be acknowledged as set-aside (hypothecated) for

a particular purpose. Amounts credited to a Special

Account may only be spent for the purposes of the

Special Account. Special Accounts can only be

established by a written determination of the

Finance Minister (section 20 FMA Act) or through

an Act of Parliament (referred to in section 21 of the

FMA Act).

Index

77

INDEX Acronym Description

ABF Australian Border Force

ACBPS Australian Customs and Border Protection Service

AFMA Australian Fisheries Management Authority

ASAS Asylum Seeker Assistance Scheme

ATT Australian Trusted Trader

CRF Consolidated Revenue Fund

DAWR Department of Agriculture and Water Resources

DCB Departmental Capital Budget

ACB Administered Capital Budget

ADF Australian Defence Force

Defence Department of Defence

DFAT Department of Foreign Affairs and Trade

DIBP Department of Immigration and Border Protection

FTA Free Trade Agreement

GST Goods and Services Tax

ICT Information and Communication Technology

IDC Immigration Detention Centre

IPC Import Processing Charge

IMA Illegal Maritime Arrival

IOM International Organisation for Migration

KPI Key Performance Indicator

Index

78

MP Member of Parliament

MYEFO Mid-Year Economic and Fiscal Outlook

OTM Other Trust Monies

PB Statements Portfolio Budget Statements

PMC Passenger Movement Charge

RCA Regional Cooperation Arrangement

RPC Regional Processing Centre

SOB Services for Other Government and Non-agency Bodies

accounts

SOETM Services for Other Entities and Trust Moneys accounts

TPV Temporary Protection Visa

UHM Unaccompanied Humanitarian Minor

VAC Visa Application Charge

VEVO Visa Entitlement Verification Online

Documents

Portfolio Budget Statements 2016-17 - Department of Home ... · Portfolio Budget Statements 2016-17 . ... manage the border to contribute to a safer, secure Australia; manage the